San Jose Bankruptcy Attorney comments on the approval of General Growth Properties’ preliminary Chapter 11 bankruptcy plan.
San Jose Bankruptcy Attorney comments on the approval of General Growth Properties’ preliminary Chapter 11 bankruptcy plan.
General Growth Properties, one of the nation’s largest shopping center owners, has received preliminary approval of its Chapter 11 bankruptcy reorganization plan. The plan calls for General Growth to restructure its $9.7 billion in mortgage debt on its 92 shopping centers and office buildings.
The terms of the plan call for General Growth to repay all of its debt by extending the terms of the loans for 5.2 years and waiving all fees and the lender’s right to accelerate the debt. The plan expands on an agreement reached last month to restructure 70 loans with more than $8.9 billion in debt. The company has properties with $6 billion in debt that will remain under Chapter 11 bankruptcy protection as it seeks to renegotiate its mortgage agreements.
General Growth filed the largest real estate bankruptcy in U.S. history in April with more than $27 billion in debt that was accumulated during an acquisition spree that allowed the company to acquire more than 200 shopping malls and numerous office buildings.
The bankruptcy debt restructuring may make General Growth an attractive acquisition target for one of its rivals, including Simon Property Group Inc. and Westfield Group, both of whom are rumored to be interested in part or all of General Growth Properties.
The Chapter 11 restructuring process will allow the properties that have not yet reached agreement with lenders to use the approved plan as a model for their negotiations. If the lenders do not agree with the plan, the company has the option of pursuing a “nonconsensual agreement” in the bankruptcy process. But the already negotiated deals will put a great deal of pressure on the lenders who have not yet reached agreement with General Growth.
General Growth Wins Interim Approval of Debt Plan, Bloomberg, December 2, 2009
If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.
